OneMain Financial offers a personal loan that’s great if you have a low credit score, urgently need funds, or want to consolidate debt.
OneMain Financial Personal Loan Summary
Ratings and opinions are of More Money More Choices editors. It’s not influenced or endorsed by any card issuer or financial institution.
Terms, rates, and fees
Information about the personal loan terms, rates, and fees are as follows:
- Loan amount: $1,500 to $20,000.
- APR: 18% to 35.99%.
- Origination fee: Depending on the state you live in, it ranges from $25 to $500 or 1% to 10% of your loan amount.
- Late payment fee: Depending on your state, it ranges from $5 to $30 or 1.5% to 15% of the monthly payment amount.
- Repayment terms: 24 to 60 months.
- Minimum credit score: N/A
- Prepayment penalties: None.
It’s great that OneMain doesn’t charge prepayment penalties. However, the interest rate is very high, and they charge an origination fee.
Be sure to shop around at local banks and credit unions to see if you can get a better rate. If not, it might be your only viable choice.
Related article: Best peer-to-peer (P2P) lending websites
Application process and requirements
The application process is quick and smooth. To be best prepared, make sure you have the following documents:
- Valid government-issued ID.
- Address verification, such as a utility bill, signed lease agreement, or a driver’s license with your current address on it.
- Proof of income, such as your most recent paystub or tax return.
Having the documents available will make the process go smoothly. Just note that you may be required to provide additional documentation based on your situation.
The application and initial response can be completed in 10 minutes online. Start by visiting OneMain’s website and applying for a personal loan.
If you have fair or bad credit, don’t worry. You may still be eligible to get a loan. It’ll ask you for your desired loan amount, information about yourself, and your income.
After everything has been verified, you’ll get a final decision. If you’re approved, you’ll sign the closing documents and get the funds.
Getting the funds
You can get the proceeds from your personal loan quickly. If your application has been approved by noon, you can get it the same day.
Otherwise, you’ll get the funds by the next business day. The key is to make sure you’ve provided all of the documentation they’ve requested for verification.
There are several ways that you can get the loan proceeds. They’re as follows:
- SpeedFunds. With a bank-issued debit card, you’ll get the funds deposited into the associated account on the loan closing date.
- ACH. Funds are deposited into your checking or savings account 1 to 2 business days after the loan closing date.
- Check. OneMain will cut you a check at the branch after you sign the closing documents.
The bottom line is that you can get access to the funds quickly. Whether you need it for an emergency or to consolidate debt, you can get the funds the same day or within a few business days.
How to make payments
Once you get your loan and finalize a payment date, it’s easy to make your monthly payments. The easiest and quickest ways to make payments are online or through the app. It allows you to pay with your debit card or ACH, which requires your account number and routing number.
If you prefer seeing a representative in person, you can visit a OneMain Financial branch to pay your loan using a debit card, check, or ACH.
Another way to pay is by calling the branch that services your loan or customer service at 1-800-742-5465.
You can also mail a check or money order to the PO Box listed on your monthly statement. Make sure the payment is made out to “OneMain”.
Lastly, you can make payments by visiting a participating retailer, such as CVS or 7-Eleven. They allow you to make payments through the PayNearMe service, which is free of charge.
With the many ways to make payments, it’ll be straightforward and easy to stay on track.
After several months or years, talk to your local branch about lowering the payment. They’ll take a look at your situation to see if you qualify for lower monthly payments.
The satisfaction guarantee is one of the best parts of getting a personal loan from OneMain Financial. If you aren’t happy with the loan after signing the agreement and getting the funds, you have seven calendar days to return it and cancel your loan.
If you buy optional products, such as insurance for the loan, you can get a full refund within the first 30 days. You can still request to cancel it for a refund after that, you’ll just get a pro-rated refund.
While they’ll do everything they can to answer your questions and resolve any issues before giving you the loan, you can change your mind without questions asked.
Overall, the customer experience is excellent. The loan specialists will also work with you to set up a monthly budget that ensures you can make payments on the personal loan.
The payments are also reported to TransUnion, Experian, and Equifax, meaning a good repayment history will reflect well on your credit report.
Should you get a personal loan from OneMain Financial?
If you aren’t able to get a lower interest rate at another financial institution, OneMain Financial may be your only choice.
The best course of action is to get the personal loan through OneMain, and after you improve your credit, refinance it for a lower interest rate. You can do this with OneMain or through another lender.
Frequently asked questions
Is OneMain Financial trustworthy?
Yes, OneMain Financial is a legitimate and trustworthy lender. They have an A+ BBB Rating, have been in business for more than 100 years, and served more than 2.3 million customers. Plus, the employees are knowledgeable and thorough.
How long does it take for OneMain Financial to provide an application decision?
The average time it takes to complete the application and receive the funds from a OneMain Financial is one business day. However, it can vary depending on the documents that are required for verification.
What happens if I miss my payment?
If you miss your payment, you may be charged a late fee. If it’s 30 days past due, it will be reported to the credit bureaus. If you go several months without making a payment, it may be sent to collections. Do everything you can to make your payments on time.
If you have a low credit score, it’s hard to get approved for a loan. OneMain Financial is one of the best places for personal loans because they make it possible for you to get one while having flexible repayment terms.
The interest rate is on the higher end, do your best to pay it off early. You can also improve your credit score and refinance it for a lower rate.
Featured image courtesy of Canva and OneMain Financial.
About David Em
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.